1. News: US reported a falling housing sales numbers and the ripple effect will be that the housing credit woes are not over yet and now people are feeling the actual effect.
Today, two major news, the unemployment claims at SGT 2030 and New Home sales at SGT2200. These news will be watch to signify the health of the economy.
2. Stock Market: Bank of America has announced to cut 3000 jobs. the Dow dip a little yesterday but in general, movement in the stock market is calm. Euorpean market too move sideway, end slightly in the red.
3. Major Currencies: EUR move sideway yesterday, a sign of consolidation after days of strengthening against the dollar. CHF and JPYlooked as it would be weaken against the dollars.
4. Technicals: With the 1 hour chart, GBP was well supported by EMA200. Attempts to clear through 2.0440 failed. Movement has been side way for the day, after 2 days of big swing down and up. On the 1 day chart, CCI showed that GBP would continue to strengthen till it achieved an overbought position. Resistance seemed to be set at 2.0500, where a big punch through would render 2.0500 becoming a good support line. A clear break north is set at 2.0640
5. Personal Assessment: The European government has been weary of the strong EUR, but is there a way to put it to a stop? US economy continue to show sign of weakness, and further coupled with next week Fed interest annoucement with a potential to cut rates will sent the dollars to a new low. Decisions to buy is difficult as you may be catch in a overbought position. Market has clearly consolidated yesterday and a breakout is emminent. I will wait for a clear signal, with north after a firm 2.0525 and south after a firm 2.0340. Attempts will be for WMA5 (using the 1 hour chart) to clear EMA200 at 2.0440. Therefore, it will either clear it and go south or rebound to go north.
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